Military Retirement Pay Tax Subtraction
Full subtraction of military retirement pay from Minnesota state taxable income.
Who qualifies
- Available to any veteran
- Honorable discharge required
- Minnesota residency
How to apply
Full retirement pay exemption
Apply through the official Minnesota agency.
Open applicationDetails
Eligibility
Military retirees receiving retirement pay computed under U.S. Code title 10, sections 1401–1414, 1447–1455, and 12733 (full-time military, National Guard, reserves), and Survivor Benefit Plan recipients (sections 1447–1455 covers SBP). Cannot be combined with the nonrefundable past military service credit.
How to claim
Claim the subtraction on Schedule M1M with your Minnesota state tax return.
Always confirm current rates and rules with the Minnesota state agency before applying.
Other Minnesota Tax Benefits
Property Tax Market Value Exclusion (70-99%)
Up to $150,000 exclusion of homestead market value from property taxes for veterans rated 70-99%.
Up to $150,000 exclusion
Property Tax Market Value Exclusion (100%)
Up to $300,000 exclusion of homestead market value from property taxes for 100% disabled veterans.
Up to $300,000 exclusion
Motor Vehicle Sales Tax Exemption (100% Disabled)
Exemption from 6.875% Motor Vehicle Sales Tax on vehicle purchases for 100% disabled veterans.
6.875% of vehicle purchase price
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